The altercation, which was sparked by a minor collision between the cyclist and the driver, erupted on Grosvenor Crescent in Summer Hill about 7.50am on Wednesday.

The 45-year-old driver allegedly called the 23-year-old cyclist "Aussie scum" and repeatedly threatened him before allegedly striking him.

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Milad Ayoub allegedly attacked the cyclist.
Credit:Channel Nine

"I'm Lebanese mate, I'm going to f--- you," the driver is heard yelling at the cyclist.

"I'm going to f--- your life, you son of a bitch. I'm going to follow you, I am going to f--- your life."

A police spokeswoman said officers were called to the altercation.

"It is alleged the driver punched the cyclist," she said. "Investigations are continuing."

Police are investigating an incident between a cyclist and a driver in Summer Hill.Credit:Channel Seven

The driver, from Sydney's inner west, told Channel Nine's Today show that he slapped the cyclist after being provoked, and he regretted his actions.

"[He was] sticking his finger up, carrying on," he said.

The bike's tyre was damaged in the alleged road rage dispute.Credit:Seven News

"We were driving and I didn't hit him, then [he] got in front of me and he started riding slowly, sticking his finger up and then he took off, braked, and I was rolling in traffic and I hit his back tyre.

"It's not right. I didn't provoke it. I'm not a violent person."

The cyclist offered a different version of the story, telling Channel 9 the driver attacked him.

"He took my bike and threw it at me," he said.

The video ends with a shot of the cyclist's damaged bike lying in the gutter and the driver returning to his ute.

The driver is at Burwood Police Station where he is assisting officers with their investigation.

Police have appealed for any witnesses to contact Crime Stoppers on 1800 333 000.